According to The Indian Express, the implementation of the trade agreement has been delayed despite negotiations having been completed a year ago, due to the ongoing dispute.
India’s move comes after warnings from the country’s steel industry that the quotas announced by the UK would, despite the FTA, restrict India’s existing levels of steel and steel product exports. Industry representatives have called on the government to secure a quota at least equivalent to India’s average steel and steel product exports over the past three years.
Government officials have indicated that India could retaliate with restrictions on Scotch whisky if its interests are harmed. A source familiar with the matter said: “Our quota should be at least at the average export level of the last three years. The quota set to come into effect on July 1 by the UK is significantly below this level and, despite the FTA, will harm the steel sector. We will face serious losses in at least six categories where we hold a significant export share. Our current exports are well above the proposed quota.”
Officials noted that, despite the conclusion of trade negotiations, industrial exports to the UK face two major regulatory hurdles. The first is the steel quota set to take effect on July 1, and the second is the Carbon Border Adjustment Mechanism, scheduled to come into force on January 1, 2027.
Meanwhile, no response was provided by the ministry to an email inquiry on the matter.
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